Hindustan Zinc Q2 net profit rises 34% on metal rally
City: 

Mining mogul Anil Agarwal-led Hindustan Zinc on Monday posted a 33.8 per cent rise in net profit at Rs 2,545 crore for the quarter ended September 30, 2017 on the back of higher volume and increase in metal prices.

The company had posted a net profit of Rs 1,902 crore in the corresponding quarter of previous fiscal, Hindustan Zinc said in a filing to BSE.

Hindustan Zinc’s total income during the July-September period was at Rs 5,796 crore, registering an increase of 25.4 per cent over the year-ago period. "Revenues during the quarter were at Rs 5,232 crore, an increase of 37 per cent Y-o-Y and five per cent Q-o-Q...The increase was on account of higher volumes and strong zinc and lead LME, partly offset by rupee appreciation,” Hindustan Zinc said in a statement. Total expenses of the company increased to Rs 2,763 crore during the second quarter, over Rs 2,278 in the corresponding quarter of previous fiscal.

Commenting on the results, company’s chairman Agnivesh Agarwal said, “The accelerating LME and record silver volumes are key drivers of our performance this quarter, though the higher commodity cycle is putting some pressure on our cost.”

He further stated that against a five-year CAGR of 39 per cent of the company’s mined metal production, Hindustan Zinc expects this year’s underground growth to be over 60 per cent, demonstrating one of the best transitions globally.

"I am delighted to note the smooth transition to underground mining...as our journey of 1.2 MT (million tonnes) of mined metal is coming closer, we are evaluating the next phase of our capacity expansion,” he said.

Mined metal production during the quarter was at 2,19,000 tonnes, up 14 per cent Y-o-Y. This was primarily on account of higher volumes from underground mines.

Integrated zinc metal production during the quarter was at 1,92,000 tonnes, up 29 per cent Y-o-Y and flat sequentially.

Integrated lead metal production was 38,000 tonnes, 24 per cent higher Y-o-Y and nine per cent higher Q-0-Q. This was in line with availability of mined metal, it said. "Integrated silver production was at a record high of 140 MT (million tonnes), up 31 per cent Y-o-Y and 22 per cent Q-o-Q in line with higher feed from mi­nes,” the statement said.

The board declared an interim dividend of 100 per cent i.e. Rs 2 per share on equity share of Rs 2 each. As on September 30, 2017, Hindustan Zinc’s cash and cash equivalents were Rs 19,979 crore. Shares of the company were trading at Rs 318.00 apiece on the BSE.